§ 2.37 p.m.
LORD FAIRFAX OF CAMERONMy Lords, I beg to ask the Question which stands in my name on the Order Paper.
§ The Question was as follows:
§ [To ask His Majesty's Government whether they are aware of the acute shortage of cement for domestic house building; and, if so, will they take immediate steps to give a better allocation to this side of the industry, otherwise 1102 serious unemployment will arise, with a further delay in the housing programme.]
§ THE PARLIAMENTARY SECRETARY, MINISTRY OF WORKS (LORD MORRISON)My Lords, I wish first to make it clear that deliveries of cement are higher than they have ever been at this time of year. The production of cement in 1950 is expected reach 9,600,000 tons, compared with 3,200,000 tons in 1949 and 7,650,000 in 1938. Three new plants will come into operation this year, with an annual capacity of nearly 600,000 tons. From the total production exports are expected to take this year about 2,000,000 tons, compared with 1,858,000 tons in 1949, and 688,000 tons in 1938. I should add that cement can also be imported from many countries without licence but, of course, at a higher price.
Demand for cement was exceptionally high during the winter, when the mild weather caused little interference with site operations, so that the usual seasonal stocks were not accumulated, and orders are at present higher thin ever before for the time of year. The effects of the reduction in capital investment decided upon last October haw not yet made themselves fell. The increase in production and the effect of the reduced level of investment taken together do not suggest any serious or lasting shortage of cement, but an illusion of shortage can only too easily be created by unnecessary fears and consequent double and treble ordering of supplies. There is reason to think that this has been happening and I hope that your Lordships will use any influence you have to discourage it.
The Ministry of Works are in constant consultation with the manufacturers upon the best distribution of supplies. No serious difficulties have been reported on housing sites outside the London area, but I am aware that there have been shortages in London, and steps have been taken to deal with them. As a result, deliveries to work in progress, including house building sites, are improving.
LORD FAIRFAX OF CAMERONMy Lords, I thank the noble Lord for his reply. Will he satisfy himself that during the present shortage the smaller firms receive their fair share of supplies?
§ LORD MORRISONCertainly; and if the noble Lord has any specific cases in mind and will bring them to my notice I will give them my personal attention.